Example: For a firm the following information is given.

𝑀𝑅(𝑞) = 𝑞 2 − 3𝑞 𝑎𝑛𝑑 𝑀𝐶(𝑞) = 𝑞 3 −

𝑞 + 2 . For the firm fixed cost=100 taka. Find out the following

1. Total cost function

2. Total Revenue function

3. Find the total cost for the firm if it decides to produce between q=3 to q=10.

Solution: 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡, 𝑇𝐶 (𝑞) = ∫ 𝑀𝐶(𝑞)𝑑𝑞 = ∫(𝑞 3 − 𝑞 + 2)𝑑𝑞 = ∫ 𝑞 3 𝑑𝑞 − ∫ 𝑞𝑑𝑞 + ∫ 2𝑑𝑞

𝑞4 𝑞2
= − + 2𝑞 + 𝑐
4 2
Since fixed cost=100 taka, so when q=0 then TC=100 taka.
100 = 0 − 0 + 0 + 𝑐 ≈ 𝑐 = 100
1 1
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡, 𝑇𝐶(𝑞) = 𝑞 4 − 𝑞 2 + 2𝑞 + 100
4 2
𝑞3 𝑞2
2. 𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑣𝑒𝑛𝑢𝑒, 𝑇𝑅(𝑞) = ∫ 𝑀𝑅(𝑞)𝑑𝑞 = ∫(𝑞 2 − 3𝑞)𝑑𝑞 = − 3(2) + 𝑐
3

Since 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 = 𝑃𝑠𝑒𝑙𝑙𝑖𝑛𝑔 ∗ 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 , so when quantity=0 then Total revenue=0

So, 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 = 0 − 0 + 𝑐 = 0 ≈ 𝑐 = 0

1 3
𝑇𝑅(𝑞) = 𝑞 3 − 𝑞 2
3 2

3. Total cost for producing between q=3 to q=10.

𝑇𝐶(𝑞 = 10) − 𝑇𝐶(𝑞 = 3) =?

10
Total cost between q=10 & q=3, 𝑇𝐶(𝑞) = ∫3 𝑀𝐶(𝑞)𝑑𝑞
 3
Example: Suppose, we have a function 𝑓(𝑥) = 𝑥 2 − 2𝑥 2 . Find the area under the curve between
x=1cm to x=5cm.

3
5 5
5 5 2 𝑥2 𝑥3
Solution: 𝐴𝑟𝑒𝑎 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑐𝑢𝑟𝑣𝑒 = ∫1 𝑓(𝑥)𝑑𝑥 = ∫1 (𝑥 2 − 2𝑥 ) 𝑑𝑥 = [ 5 − 2 ( 3 ) + 𝑐] |
2
1
2 5 2 2 5 2
= (5)2 − (5)3 + 𝑐 − { (1)2 − (1)3 + 𝑐}
5 3 5 3
𝑏
∫ 𝑓(𝑥)𝑑𝑥 = 𝐹(𝑏) − 𝐹(𝑎)
𝑎

Example: 𝑇ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑡𝑦 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑜𝑓 the completion of 𝑦𝑜𝑢𝑟 𝑎𝑠𝑠𝑖𝑔𝑛𝑚𝑒𝑛𝑡 𝑖𝑠,

𝑓(𝑥) = 12(𝑥 2 − 𝑥 3 )

Here 𝑥 𝑖𝑠 𝑡ℎ𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑎𝑠𝑠𝑖𝑔𝑛𝑚𝑒𝑛𝑡 done,0≤𝑥≤1.

• Find the probability that up to 50% of your assignment will be completed.

• Find the probability that 70% to 100% of your assignment will be completed.

0.5 0.5 0.5

Solution: Pr(𝑢𝑝 𝑡𝑜 50%) = ∫0 𝑓(𝑥)𝑑𝑥 = ∫0 12(𝑥 2 − 𝑥 3 )𝑑𝑥 = 12 ∫0 (𝑥 2 − 𝑥 3 )𝑑𝑥 =

0.5
𝑥3 𝑥4
12 [ 3 − 4] | =
0

1
Pr(70% 𝑡𝑜 100%) = ∫ 𝑓(𝑥)𝑑𝑥
0.7